BTC climbed above $34,000 for the first time this Sunday, extending a record-breaking rally in the volatile cryptocurrency that delivered over 250% in gain just in 2020. However, after raising from $29,000 on Saturday, January 2nd to its record on Sunday, January 3rd, it went back to around $32,000 yesterday, not before crashing to $27,000 on Monday and immediately climbing back.
Our previous analysis from a month ago, when CVI reached a level of 98.6, indicated the possibility of strong market swings in the near future. Since then, CVI has been reaching an all time high of 121.2 yesterday, after a long and steady increase from January 2nd.
An Investor that held a long position in BTC from Saturday up until yesterday has made less than 10% profit, not before losing almost 10% of his investment on Sunday. Due to these significant price swings, a long position in CVI in the same period could have yielded a potential profit of 35%, allowing the investor to enjoy profits both from the increase and the crashes of BTC.
Currently, CVI is still very high at 120.4. The past few days indicate that the market still believes the BTC will remain volatile in the near future and that additional price movements are on their way.
For more information and examples on CVI, please refer to the CVI announcement.
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